Panic over?

CB1979_2

the best bit about all this posted by a guy on another forum i'm on:

It's amusing in a way, all these savers rushing the bank to make sure they do not lose their savings, even though the bank of england have promised to back the bank.

So after a long que to withdraw their money since they obviously do not trust the bank of englands word, they get given bits of paper with a promise written on them by the bank of england

there's no difference to my company having cash flow problems and me going to my bank to get an overdraft than NR have done. Obviously the BoE wouldn't have given them a backing if there was a real threat of them going down the swanny!

WTF?_2

CB1979 wrote: »

the best bit about all this posted by a guy on another forum i'm on:



there's no difference to my company having cash flow problems and me going to my bank to get an overdraft than NR have done. Obviously the BoE wouldn't have given them a backing if there was a real threat of them going down the swanny!

A couple of small points that you might have missed despite your obvious financial acumen.

(1) If they weren't in trouble, they wouldn't have gone to the BoE to get them to act as a lender of last resort. Their business model is just not viable and the massive drop in their share price over the last few months reflects this.

(2) When a bank needs a running 'overdraft facility' from the central bank in order to keep functioning, they are in trouble.

HugoSP

Northern Rock has a huge amount of collateral in morgaged properties to guarantee its creditors.

If borrowers pay their mortgages then there shouldn't be a problem with NR meeting its obligations. If they don't then ultimately their houses get reposessed, and the bank's creditors' investments are secure, because the houses are sold.

Assuming a fairly stable housing market - meaning prices don't fall by more than 10% say.....

In addition, it would be folly to let NR go bust as the cost to society would be huge, dwarfing the cost of bailing them out in a collapsing economy.

On a purely commercial basis, NR may be in trouble aside from it's current standing in the market. They still have a number of borrowers and general customer base. They have critical mass as a service provider, hence there will still be heaps of goodwill on their balance sheet.

However this will not last forever.

As Alan says, the likely scenario is that NR get bought out by another bank, who can more easily pump cheaper money into mortgages than NR can currently do on its own. It makes perfect sence.

To use Codger's sausage analegy, HSBC may have been buying in sausages for 50p at the same time as NR, but his standing with his supplier is still good whereas NR's standing is not.

However NR still has a number of people wanting to buy sauseges for £1, because they like dealing with them, or have to deal with them for a number of reasons.

Even if the sausage supplier has put his prices up to 60p to all his credit worthy customers then HSBC is in a much better postion to NR.

So what better move is there than to take on NR as a struuggling sauseage retailer, along with some customer base, and assure supply via HSBC's good standing to NR's customers, thereby increasing the overall customer base overnight?

BobProperty

dolce_vita wrote: »

Have you seen the latest government compensation scheme?

HAVE A LOOK HERE

Love the last para: "Northern Rock investors tend to be respectable types who vote, unlike the horrid poor people who are left high and dry when their Christmas Club goes down the shitter."

The same site has an alternative view on keeping customers loyal too:
http://www.thedailymash.co.uk/news/business/northern-rock-hands-out-staff-to-customers-20070917403/

bendeus

Alan_M wrote: »

Like I said, if it offends you don't read it, I'm as entitled to my views as much as the next guy, I'm also entitled to use what terminology I deem reason able and fit as long as it doesn't contravene the terms of this forum (in which case it would be censored) or what is socially acceptable.

The term Mr & Mrs Trailer Trash I actually took from a conversation on sub prime mortgages I was watching on the Bloomberg channel. It ably describes a large proportion of the uneducated people that the fringe and unscrupulous lenders targeted, in the same way the term redneck does.

I'm not setting out to offend people, I'm using terms freely used in America on a daily basis, even by the press and media.

I intensely dislike over zealous political correctness, just get a thicker skin and get on with life, no one is going to be crying into their chicken soup tonight because I've used the phrase "trailer trash" on a public forum.

"Disliking overzealous political correctness" is an easy way of saying that you'll say what the f**k you like - regardless of its effect - and damn those who gainsay you.

Please define what you consider to be 'political correctness' and I'll be happy to engage in a debate with you regarding it. Plaintively bleating about PC persecution merely gives shape to your inability to deal with the argument.

Do you feel that 'using terms freely used in America' gives any credence to what you're trying to say? This is a country that imposed segregation up until the 1960s. Possibly not the best premise from which to launch your counterattack.

As I have already said, if you feel fine about referring to 13% of a 250,000,000 strong population as trash, then its your call. It does tend to mark you out as at best ignorant, and at worst a bigot, however.

Neither I, nor those who thanked me (please refer to posts) for challenging you on your colourful choice of words are crying into any kind of soup and, believe me, my skin is plenty thick enough. The plaintive mewlings of somebody who has been exposed as a result of his ill-thought-out comments are unlikely to ripple the surface, if you don't mind me saying.

bendeus

ds1980 wrote: »

in a word yes. At that time of course as you make your own way in life then you gain new status.

Barely worthy of comment, is it? Did public school never teach you to use commas?

ds1980

if all else fails then use a line about grammar. brilliant what an argument

Jonbvn

bendeus wrote: »

/off topic, but have to say it/

A very apposite and well-thought-out post.

However,

Would you refer to people on the margins of society or below the poverty line in the UK as 'trash', I wonder? Your tone appears to be sneeringly dismissive of those, both black and white, who constitute the 'have nots' in what is unarguably the most unequal 'Western democratic' (sic) society on earth. 13% of the 250,000,000 residents of the US are officially categorised as living below the poverty line, and in a country with notably low levels of social care, negligible workers' rights and job protection, which furthermore is witnessing the flight of its traditional manufacturing sector south across the Mexican border, and which has seen an increase in both real terms poverty and the gap between rich and poor under the current administration, your ill-informed choice of words are at best ignorant, and at worst, plain insulting.

I was brought up in a council house with only a single parent supporting me. Would you have regarded me as *trash*, I wonder?

First thing to remember is not to take anything on an internet message board personally. The phrase "trailer trash" and "white trash" have been coined by the media far too often, to make the terms in any way insulting.

You can get down of that high horse now....

BobProperty

bendeus wrote: »

"Disliking overzealous political correctness" is an easy way of saying that you'll say what the f**k you like - regardless of its effect - and damn those who gainsay you......

I thought it was called free speech. I might not like what you say but I will defend your right to say it.
The internet has some places where they let it happen, this site is very polite. (Try HeeKee's campidiot forum if you want something more "basic" and American 1st Amendment "free speech" sort of place.:eek: and no I don't go on there!)